First tranche of FOFA reforms underway

A number of the government’s FOFA reforms commenced on 1 July 2014 by way of the Corporations Amendment (Streamlining Future of Financial Advice) Regulation. These changes include:

– Removal of ‘opt-in’ requirements
– Removal of the catch-all provision of the best interest duty
– Increased options to provide scaled advice
– Removal of the requirement for fee-disclosure statement to pre-1 July 2013 clients.

The government will seek to introduce the balance of the proposed reforms to FOFA by way of a mix of regulations and amendments to the Corporations Act. For more details see the Acting Assistant Treasurer’s statement.

With the changes in the Senate from 1 July 2014, and public statements from various parties as to their position on the FOFA reforms, the path of the FOFA reforms may not be smooth.